A new survey of over 500 landlords found that 81% of landlords make improvements on every property they add to their portfolio, with 22% spending over £25,000 on upgrading a new portfolio property and 18% spending between £10,000 and £20,000.

The survey, commissioned by buy-to-let mortgage specialist Paragon Bank, found landlords expect to see an average increase of 19.8% in the property’s value after completing upgrade work, with a 16.5% increase in expected rental income. Around 40% of landlords prefer to purchase property in need of refurbishment, with 21% opting for properties that are ready for tenants to move into.

There has been a significant improvement over the past 15 years in the private rented sector. According to the Government’s English Housing Survey, 23% of homes in the sector are currently defined as non-decent; a vast improvement of 44% of homes in 2008. In 2008, 1.8 million privately rented homes were classed as decent, rising to 3.3 million in 2021 – an 83% increase.

Asked why landlords make improvements to their property, 83% of landlords said they do it to provide a good quality home to their tenants, 66% upgrade to improve rental income, 57% to increase the capital value and 47% for energy efficiency reasons.

Painting and decorating is the most common improvement landlords typically make, followed by the installation of a new bathroom or kitchen and boiler. Six in 10 also add new windows, whilst a third of landlords make improvements to gardens.

Based on the findings, LPS MD and In-House solicitor, Joe Gervin, said: “Over the past 15 years, we’ve seen a shift in the attitude of landlords in terms of quality of rental properties. Most landlords realise having properties at a ‘good to high standard’ generally results in happier tenants that are more likely to look after your property. By investing in the aesthetic of your property you’re also increasing the value of your capital asset. It’s definitely worth speculating to accumulating.”

If you need any advice on improving your property, please give us a call on 0151 236 7771 or email Vicky.

Information from: Property Reporter   |    English Housing Survey